Annual Report 2011/12 - Melbourne Cricket Club

Annual Report 2011/12 

Melbourne Cricket Club

Our mission 

The Melbourne Cricket Club is a private club with public responsibilities. 

It has two primary roles: 

• Managing the MCG as the world’s best stadium for all people. 

• Providing the best services and facilities to its members while ensuring 

our unique sporting culture and heritage are enhanced and appreciated. 

STRATEGIC VISION 

The club’s strategic direction is underpinned by the following dimensions: 

• Improving the engagement we have with our members and waiting list candidates. 

• Destination MCG — giving people more reasons to visit, more often. 

• Environmental responsibility. 

• World-class MCG: The amenity upgrade continues. 

In achieving these initiatives, we recognise that we must continue to deliver excellence 

in all of our core operations. 

Our values 

Respect 

The club prides itself on the respect and esteem it has earnt over its long and prestigious 

history. As staff, we respect our work colleagues, their abilities and views. We work as 

a team towards a common goal. 

By pursuing excellence and using our people to constantly deliver on our promises, we 

will earn the respect of our colleagues, stakeholders, customers and the wider community. 

People 

People are the most important asset in our organisation. Our staff feel important through a 

variety of recognition programs and initiatives and are immensely proud of their involvement 

at such an iconic venue. 

Our staff enjoy their time at work and are recognised in a variety of ways for their 

performance. Integrity, honesty, loyalty and teamwork are the keys to providing a 

memorable customer service experience for our patrons and members. 

Heritage 

We will continue to develop the MCG into one of the world’s finest sporting stadiums 

and Australia’s greatest sporting icon, drawing on our history to reinforce its image as 

the People’s Ground. 

The club’s history, its rich and vast heritage collection and its culture will be observed, 

preserved and displayed for our members and visitors to savour. 

Excellence 

We are committed, collectively and as individuals, to strive for excellence at all times — 

using the best suited products and processes to deliver major events and consistently 

exceed expectations of service to our customers. 

We commit to improving the level of enjoyment for patrons, members and their guests 

while at the MCG.

President’s Report 

PAUL SHEAHAN, PRESIDENT 

It’s my very great pleasure to present my second report as president of the club we love. 

In 2011 we enjoyed another extraordinarily 

successful season in the life of the club 

and, as a national and international venue 

for elite sport, there are few in the world that 

can match us. That will not lead to a sense 

of complacency of how good we are and how 

well we do things. Rather, it is recognition 

that we must continue to work hard to 

provide the benchmark by which others 

judge themselves. 

None of this happens without effort, of 

course, and the efforts of those who work at 

the club and at the ’G on a day-to-day basis 

astound me. Even though comparisons are 

odious, we can marvel at the architecture 

of the place and be immensely proud that 

we can match it with anything that may be 

thrown at us. In the end, though, it is my 

belief that it is the quality of the management 

and the interactions of people that are our 

greatest strengths. 

In that regard, I pay tribute to everyone 

who puts their mind to assessing their 

performance and continually trying to 

improve it. I pay tribute to the staff for the 

positive comments that come my way from 

members and visitors who are served with 

great care and attention to detail by those 

who work at the ground. 

At the risk of overlooking some, I pay 

special tribute to the ground staff under the 

direction of Cameron Hodgkins, who 

present the ground in impeccable condition 

day after day. 

After all, if we cannot produce a playing 

surface that players admire we are nothing. 

We can boast the latest in technology off the 

ground but it amounts to little if players 

grizzle about sub-standard playing conditions. 

In mastering the horticultural technology 

that allows cricket pitches to be lifted in and 

out of the surface and still produce some of 

the best wickets in the country, plus ensuring 

that the ground drains quickly and efficiently 

when it rains, the ground staff deserve our 

unalloyed praise… and I thank them sincerely 

for what they have achieved. 

Michael Happell ascended to the 

treasurership of the club somewhat earlier 

than he (or we!) might have expected with the 

rather sudden departure of his predecessor, 

Michael Andrew, to Hong Kong as global 

managing partner of KPMG. 

A measure of Michael’s intelligence and 

mastery of his “portfolio”, though, has 

been the way in which he has come to 

understand the club’s finances, seemingly with 

consummate ease. Charles Sitch and Mark 

Smith, two recent additions to the committee, 

have already shown that they are worthy of 

their positions, having made wise and astute 

observations and suggestions already. 

We shall need the expertise and intelligence 

of all three, in addition to the remainder of 

the committee, in making some important 

decisions about what lies ahead for the club. 

We are in the throes of trying to establish a 

base outside the ’G that members can say 

truly belongs to them and, while there are 

some options, it will require great skill and 

wise judgment to make the right decisions. 

On a different subject, the matter of grand 

final seating looms large for members. When 

we survey our membership, responses span 

the gamut from those who have suffered 

the vagaries of what the probability 

mathematicians call “random selection” and 

have missed out many times in a row, to those 

who might equally have missed out but say 

that the system is as fair as it can be. 

In the end, one needs the wisdom of 

Solomon to choose an answer that satisfies 

everyone. In fact it is not possible to satisfy 

everyone. Our aim is to make the system as 

fair and as accessible as possible. After much 

discussion, once again we have decided to 

Above: The MCG was again centre stage for 

the finale to the AFL season. A crowd of 99,537 

witnessed Geelong Cats defeat Collingwood 

in the 2011 grand final, registering its third 

premiership in five years. 

stick with the current system for 2012, 

but rest assured that the procedure is under 

review each year. 

One other matter should be raised. 

Recently there has been an unusually large 

number of instances of members lending 

cards. Without wishing to sound as though 

I’m issuing idle threats, I emphasise that I and 

your committee take a very dim view of this 

practice. I remind members of the 

responsibilities that attach to membership 

and that the Discipline Sub-committee will 

deal harshly with offenders. 

The football fixture is more than half 

completed and we have had a wonderful 

season. It has been a season of 

unpredictability and more than a handful of 

teams could take away the cup this year. Let’s 

hope what lies ahead is equally exciting! 

Paul Sheahan 

MCC Annual Report 2011/12 

1

MCC Committee 2011/12 

PAUL SHEAHAN 

PRESIDENT 

Joined the committee in 1987. Elected 

vice-president in 2003 and president in 2011. 

Chairman of the Executive Sub-committee 

and ex-officio of all other sub-committees. 

A director of the MCC Foundation and 

National Sports Museum Ltd. 

DAVID CRAWFORD AO 

VICE-PRESIDENT 

Joined the committee in 1997. Elected treasurer 

in 2001 and vice-president in 2009. Chairman 

of the Ground Sub-committee. Joint Steering 

Committee chairman for Yarra Park and Great 

Southern Stand projects. A member of the 

Executive Sub-committee. A director of the 

MCC Foundation and National Sports 

Museum Ltd. 

PETER DAKIN 

Joined the committee in 2003. A member 

of the Club, Cricket, Ground and Finance & 

Audit sub-committees, a director of the MCC 

Foundation and a member of the National 

Sports Museum Advisory Board. 

WILL FOWLES 


of the Club, Finance & Audit and MCC 

Foundation sub-committees and a 

director of the MCC Foundation. 

JANE NATHAN 


of the Ground and MCC Foundation subcommittees 

and a director of the 

MCC Foundation. 

STEVEN SMITH 



vice-president in 2011. Chairman of the 

Club Sub-committee. Member of the 

Executive Sub-committee. A director of 

the MCC Foundation and National Sports 

Museum Ltd. A former Melbourne Football 

Club player. 

STEPHEN SPARGO 



vice-president in 2011. Chairman of the 

MCC Foundation Sub-committee and a 

member of the Executive Sub-committee. 

A director of the MCC Foundation and 

National Sports Museum Ltd. 

CHARLES SITCH 

Joined the committee in 2011. A member 

of the MCC Foundation Sub-committee and 

a director of the MCC Foundation. 

MARK SMITH 

Joined the committee in 2011. A member 

of the Finance & Audit Sub-committee and 

a director of the MCC Foundation. 

KAREN WOOD 


of the Club Sub-committee and a director 

of the MCC Foundation. 

MICHAEL HAPPELL 

TREASURER 

Joined the committee in May 2011. Appointed 

treasurer in August 2011. Chairman of 

the Finance & Audit Sub-committee. A 

director of National Sports Museum Ltd. 

Member of the Executive and MCC 

Foundation sub-committees. 

TED YENCKEN 


of the Ground Sub-committee and the Joint 

Steering Committee for Yarra Park and Great 

Southern Stand projects. A director of the 

MCC Foundation. 

DAVID CROW 

Joined the committee in 1993. Chairman of 

the Cricket Sub-committee and a member 

of the Club, Finance & Audit and MCC 

Foundation sub-committees. A director 

of the MCC Foundation. 

NOTES 

Michael Happell was appointed to the committee on May 10, 2011 

to fill the casual vacancy created by the retirement of David Meiklejohn. 

Peter Mitchell retired and vacated the committee on June 6, 2011. 

Charles Sitch and Mark Smith were appointed to the committee in 

December, 2011 to fill casual vacancies created by the elevation of Michael 

Happell to treasurer and Stephen Spargo to vice-president. 

2 MCC Annual Report 2011/12

MCC Senior Management 

STEPHEN GOUGH 

CHIEF EXECUTIVE OFFICER 

Overall responsibility for the delivery of the 

strategic plan, business plan and day-to-day 

operation of the club, MCG, National Sports 

Museum and Yarra Park via his senior 

management team. Reports to the 

MCC Committee and MCG Trust. 

SCOTT BUTLER 

GENERAL MANAGER, 

MEMBER AND CUSTOMER SERVICES 

Responsible for activities relating to MCC 

membership and club life, including functions, 

database management, customer service, 

event delivery and the club’s cricket, sporting 

sections and special interest groups. Oversees 

the organisation’s communications plan, main 

customer interface and delivery of the new 

membership system project. Manages activities 

associated with the MCC Foundation. 

TREVOR DOHNT 


EVENT OPERATIONS 

Responsible for the planning and delivery of all 

major events staged at the MCG and to liaise and 

negotiate with existing and potential venue hirers. 

A member of the Great Southern Stand 

refurbishment project team and Yarra Park 

project team. 

CLIVE DRISCOLL 


FINANCE AND INFORMATION SYSTEMS 

Administers the finances of the club’s entities, 

including reporting, financial performance 

management, investment, compliance and debt 

management. Delivers and maintains IT systems 

and network technology for the business. 

PETER FRENCH 

ASSISTANT TO CHIEF EXECUTIVE OFFICER 

Acts as an internal resource to the president, 

committee and chief executive officer on 

various projects and plans as required. 

GERARD GRIFFIN 

EXECUTIVE MANAGER, 

PROJECTS AND STRATEGY 

Responsible for the management of key projects, 

including the Great Southern Stand refurbishment 

and stadium theming and branding strategy. 

Co-ordinates the strategic planning process, 

including the club’s annual business plan and 

risk assessment system, as well as business 

improvement and analysis. 

REBECCA HARVEY 


HOSPITALITY 

Works with the club’s hospitality provider 

to review the food and beverage offerings 

throughout the MCG. Investigates opportunities 

to ensure the MCG provides innovative and quality 

products, as well as developing the venue’s 

function business. 

MARGARET BIRTLEY 


HERITAGE AND TOURISM 

Oversees operation of the National Sports Museum 

and MCG Tours, key elements of the Destination 

MCG initiative, as well as the MCC Museum, MCC 

Library and MCC Archives. Responsible for the 

heritage collections owned by the club, National 

Sports Museum and MCG Trust. 

KATHRYN PILE 


PEOPLE AND CULTURE 

Ensures that the MCC has a comprehensive 

and effective human resources system, 

including safety management, that supports 

the achievement of the club’s business 

plan objectives. 

LISA TRAINOR 


COMMERCIAL OPERATIONS 

Responsible for the MCG’s marketing initiatives, 

including corporate sales, business development 

and commercial arrangements with sponsors, 

suppliers, advertising and merchandise. Leads 

Destination MCG strategic project group. 

TONY WARE 


ENVIRONMENT AND TURF DEVELOPMENT 

Responsible for the strategic initiative relating 

to environmental responsibility, including 

delivering the Yarra Park master plan, reducing 

the stadium’s carbon footprint and developing 

long-term solutions for the welfare of the MCG 

playing surface. 

PETER WEARNE 


FACILITIES 

Responsible for the strategic and operational 

performance of the built assets at the MCG and 

other MCC-managed sites, including building 

services, security and turf management. 

A member of the Great Southern Stand 

refurbishment project team and Yarra Park 

project team. 


3

Chief Executive’s Report 

Stephen Gough, CEO 

Strong attendances, marquee events, a new cricket competition and two major 

construction projects were just some of the many features of 2011/12 for the 

Melbourne Cricket Club. It is my pleasure to outline here our key achievements. 

AFL 

The MCG was again pivotal to the success 

of the AFL in the 2011 season, with excellent 

attendances recorded at the home of football. 

The ground attracted 2,536,696 people to 

47 home and away matches at an average of 

53,572 per game, marginally ahead of the 

previous season. 

In addition, the MCG hosted the 25 

best-attended home and away matches, 

thanks to the strong form and large 

membership base of clubs such as 

Collingwood, Hawthorn, Geelong, 

Carlton, Richmond and Essendon. 

Seven of those matches exceeded 

80,000 fans — the most in a single 

season in VFL/AFL history. 

After six months’ jockeying for 

favouritism, the two standout teams, 

Geelong Cats and Collingwood, met at 

a wintry MCG on the first Saturday in 

October in the grand final. 

With 99,537 looking on, it was the Cats 

who triumphed by 38 points, kicking away 

with five goals to nil in the final term after 

three quarters of entertaining, high-pressure 

football befitting the occasion. 

Jimmy Bartel took out the Norm Smith 

Medal to sit alongside his club’s third 

premiership in five years. We congratulate 

Geelong Cats on a deserved victory. 

The MCG hosted seven finals (including 

the grand final), culminating in a total 

attendance for the season of 3,069,471. 

This figure almost mirrors the 2010 season, 

which contained an extra grand final. 

CRICKET 

The MCG hosted the Boxing Day Test, 

a Twenty20 international, two one-day 

internationals and four T20 Big Bash 

Australia celebrates the dismissal 

of India’s Virender Sehwag on Day 2 

of the 2011 Boxing Day Test. 

League (BBL) matches in the 2011/12 

cricket season, attracting 420,178 patrons. 

The ground also hosted Victorian 

Bushrangers’ matches in the Sheffield 

Shield and 50-over competitions. 

The new, eight-team BBL — played 

predominantly in December and January 

to capture school holiday audiences — 

Highest AFL home and away attendances at the MCG in 2011 

Attendance Match dAte 

89,626 Essendon v Collingwood April 25 

88,181 Collingwood v Carlton April 8 

85,936 Carlton v Collingwood July 16 

85,705 Collingwood v Geelong Cats September 2 

83,985 Collingwood v Hawthorn July 3 

83,563 Richmond v Essendon May 21 

81,691 Geelong Cats v Collingwood May 13 

78,579 Hawthorn v Geelong Cats April 26 

78,065 Carlton v Essendon April 16 

75,998 Melbourne v Collingwood June 13 

contained two teams in Melbourne. The 

Shane Warne-inspired Melbourne Stars 

called the MCG home, with Melbourne 

Renegades based at Etihad Stadium. 

The return of champion leg-spinner 

Warne after a five-year hiatus was an 

understandable attraction to fans young 

and old. The 42-year-old didn’t disappoint 

either, and his commentary while bowling 

gave television viewers a fascinating insight 

into Warne’s reading of the game and 

confidence in his skills. 

Almost 110,000 people attended the 

Stars’ four MCG matches, including more 

than 40,000 for the “derby” between the 

two Melbourne teams that was 

unfortunately abandoned mid-match due 

to rain. We look forward to the second 

instalment of this competition next summer. 

The Boxing Day Test, though, remains the 

heartbeat of the MCG cricket season and so 

it was when a rebuilding Australia hosted a 

much-vaunted India team. 

The build-up contained plenty of hype, as 

India’s maestro Sachin Tendulkar attempted 

to become the first batsman to score 100 


Geelong Cats players Corey Enright, 

Andrew Mackie, Tom Lonergan, 

Harry Taylor and Matthew Scarlett 

with the 2011 AFL premiership cup. 

international centuries. A large Indian 

media contingent, and a considerable 

portion of the 70,068 crowd on the first 

day, had come to witness cricket history. 

It was not to be, with Tendulkar scoring 

73 and 32 as Australia’s bowlers dominated 

India’s star bats to win by 122 runs. It 

would start a trend that would continue 

throughout the series, as the home side 

secured a 4-0 victory. 

Not to be forgotten is Ricky Ponting. 

The Tasmanian moved into second place 

(behind Bradman) on the MCG Test runs list 

during the Boxing Day Test with 1338 runs 

at 58.17. 

The match attendance of 189,347 was 

the highest for a Test between the two countries 

anywhere in Australia, reflecting the popularity 

of the game’s oldest form and the rivalry of the 

two teams. It was also the fifth-highest MCG 

Test crowd in the last 30 years. 

That play was possible at all on Boxing Day, 

let alone on time, was remarkable considering 

the massive thunderstorm on Christmas Day 

and subsequent 40mm of rain absorbed by the 

magical MCG outfield. 

We commend Cameron Hodgkins and his 

team for the quality of the arena and pitch 

presented for play, which was validated by 

feedback from players, match officials and 

Cricket Australia. 

Australia also played two 50-over contests 

at the MCG, against India and Sri Lanka, as 

well as a Twenty20 international clash with 

India which attracted 62,275 fans. 

OPERATING RESULTS 

The club recorded a net profit for the financial 

year ending March 31, 2012 of $24.575 

million, which was strongly impacted by 

government grants of $14 million for the 

Great Southern Stand and Yarra Park 

landscape projects. We continue to meet our 

obligations with respect to the redevelopment 

debt, which stands at $280.383 million. 

YARRA PARK 

The MCC’s second year charged with the 

responsibility of day-to-day management 

of Yarra Park involved major developments 

that will underpin the long-term health 

of the parkland and improve its amenity. 

Chief among these was construction 

of Victoria’s largest underground Water 

Recycling Facility (WRF) in Yarra Park 

adjacent to the MCG. The facility, built by 

Tenix, will treat sewage to Class A recycled 

water standards. The $24 million project has 

MCC ($18 million) funding the WRF and State 

Government of Victoria providing $6 million 

for landscaping work in Yarra Park. 

This water will then be reused primarily 

as irrigation in Yarra Park, for cleaning 

and toilet flushing at the MCG, as well as 

nearby Punt Road Oval. The plant will be 

able to produce more than 600 kilolitres 

of recycled water per day. 

As one of the first of its type in Victoria, the 

recycling facility has been built underground, 

out of public view, without taking away from 

valuable surface land use or park amenity. 

Construction is scheduled for completion in 

late-July/early-August 2012. 

In line with the MCC’s master plan 

for Yarra Park, work during the year also 

commenced on the re-establishment of 

avenues of trees, selected tree planting 

and additional mulching, new garden 


5

RIGHT: Construction of a below-ground water 

recycling facility in Yarra Park is a major 

component of the MCC’s plan to restore the 

health of the parkland adjacent to the MCG. 

beds and large-scale upgrades to the 

park’s irrigation system. 

GREAT SOUTHERN STAND 

Work on a $55 million upgrade of the 

MCG’s Great Southern Stand started 

shortly after the 2011 AFL Grand Final. 

Construction Engineering is the 

project builder. 

The upgrade, funded by a $30 million 

contribution from the Victorian 

Government and $25 million from MCC, 

will improve the patron experience across 

all four levels of the Great Southern Stand. 

Refurbishment of the stand involves 

improved entry points at gates 4, 5, 6 and 

7, with an emphasis on open, light spaces 

similar to the northern side of the stadium. 

There will also be kitchen upgrades, 

improved food and beverage outlets 

(including food courts), new toilet 

facilities and upgrades to infrastructure 

services, audio-visual systems and signage. 

The AFL Members Reserve is also being 

improved, with upgrades to several existing 

areas such as the Bunton, Wills and Legends 

rooms, as well as creation of a 500-seat 

function room on Level 2. 

The majority of the project is expected 

to be completed prior to September, 2012. 

AUSTRALIA POST AVENUE OF LEGENDS 

A significant off-field highlight was Shane 

Warne joining an illustrious group of 

sporting legends when he unveiled his 

statue outside the MCG on December 

22, 2011. 

Warne was watched on by his family, 

former teammates and hundreds of adoring 

fans as he revealed the one-and-a-half-times 

life-size bronzed sculpture of himself in 

classic leg-spin pose. 

The Louis Laumen work was the first 

statue commissioned in the Australia Post 

Avenue of Legends project. 

The joint initiative will see a minimum of 

five statues placed in Yarra Park, extending 

from the MCC members’ entrance along an 

avenue towards Wellington Parade. 

A statue of legendary VFL player and 

coach Norm Smith, created by sculptor 

Lis Johnson, is due to be unveiled in 

late-September. 

We are delighted to partner Australia 

Post in this initiative to further preserve 

and celebrate our rich sporting heritage. 

MCC MEMBERSHIP 

Membership intake 

The election of Full members in July 2011 

comprised candidates on the waiting list 

nominated from January 1, 1989 to 

April 30, 1989. 

Waiting list candidates nominated 

from June 1, 1995 to August 31, 1995 

inclusive were offered Restricted or 

Restricted Junior membership. 

Members by category 

at August 31, 2011 

Full 61,500 

Restricted 41,000 

Total 102,500 

Waiting List 217,000 

CRM system 

In March 2012 the MCC completed a 

transfer of our membership system to a 

customer relationship management (CRM) 

system. This will allow us to better 

understand how members interact with the 

club. As we develop the system it may also 

give members greater input into how the 

club communicates with them and enable 

the club to tailor offerings accordingly. 

The new system, developed by our 

contractors Avanade, will also bring a range 

of internal process and administrative 

benefits which, in turn, will help us deliver 

a more efficient and sophisticated level of 

service to our members. 

Functions 

The club again held a number of 

entertaining functions for members and 

guests. These included The Bradman 

Luncheon, Members’ Dinner, Football 

Season Launch Luncheon, Brownlow 

Dinner with the Coodabeens, Test match 

breakfasts, golf days, induction functions 

for new members and luncheons for our 

volunteers and 50-year members. 

The annual Members’ Dinner on 

December 9 was a stand-out. Former 

Marylebone secretary and current SACA 

CEO Keith Bradshaw proposed the toast 

to cricket and few could be better qualified 

to respond than Greg Chappell, former 

Australian captain, champion batsman 

and international coach. 

There were also several new functions on 

the calendar. The Norm Smith Oration was 

held on June 7, 2011 as former Melbourne 

captain Garry Lyon and media legend Tony 

Charlton paid tribute to the game of 

football. The event is about football 

and what it means to Australians and is 

appropriately named in honour of one of 

the game’s legends. 

Meanwhile, in a successful new initiative, 

two Comedy @ the ’G events were well 

received by members and guests during the 


2011 season, with two full houses packing 

into the Hans Ebeling Room for a pre-game 

laugh. This format has been expanded in 

2012 with a large-scale comedy event held 

in the Members Dining Room on April 20 

to rave reviews. 

MCC Cricket 

While our First XI bowed out in the quarter 

finals, the club continued its strong record 

in the lower grades of Cricket Victoria’s 

Premier Cricket competition. 

The Second XI won its fifth flag in 10 

years, while the Third XI secured a treble 

of titles and its seventh premiership in 12 

years. The Fourth XI, meanwhile, had to 

be content with runners-up in their drawn 

match against the higher-ranked Northcote. 

The club also commenced along the path 

towards fielding a women’s cricket team for 

the first time, with plans to compete in the 

Victorian Women’s Cricket Association 

in 2012/13. 

Sporting Sections/Special 

Interest Groups 

A significant addition to the MCC 

representative sport stable was the introduction 

during the year of netball as a special interest 

group, containing teams wearing the club 

colours for the first time. Three MCC teams 

took to the court in the Parkville Netball 

Association, with our A1 side securing a 

premiership in its inaugural season. 

In time, it is hoped that netball will join 

the ranks of the club’s sporting sections — 

baseball, bowls, croquet, football, golf, 

hockey, lacrosse, real tennis, target 

shooting, squash and tennis. The club’s 

website and individual section websites 

record their performances in detail. 

The club’s other special interest groups 

— Bridge Club, Long Room Wine and Food 

Society, War Veterans Group, Women of 

MCC, XXIX Club and Young Members 

Club — continue to prosper. We encourage 

our members to become involved with the 

activities of these groups. 

TOP: A statue of cricketer 

Shane Warne was 

unveiled in Yarra Park 

on December 22, 2011 

as part of the Australia 

Post Avenue of Legends. 

BELOW: A new 500-seat 

dining room on Level 

2 of the AFL Members 

Reserve is a key feature 

of the $55 million 

refurbishment of the 

Great Southern Stand. 

Reciprocal club visits 

During the Boxing Day Test in late-December 

the MCC hosted Cricket Club of India (CCI) 

on its first Australian visit since 2003. 

The CCI played a 40-over match against 

the MCC XXIX Club at the Albert Ground 

on December 29, before taking on an MCC 

representative team on the MCG on 

December 31. 

The club also visited Hong Kong Cricket 

Club in April, 2011. Our cricketers and 

golfers competed as part of our reciprocal 

counterpart’s 160 th birthday celebrations. 

HERITAGE 

The National Sports Museum is home to 

Australia’s premier repository of sportsrelated 

collections, and is also manager 

of MCG Tours. 

The fourth year of operation saw the 

museum and MCG Tours receive visitation 

in excess of 135,000 people. A substantial 


7

and “Football & Fun: caricatures, comics 

and children’s literature”. We also celebrated 

the 150th anniversary of International 

Cricket in Australia with Spiers & Pond’s 

sponsorship of the tour by H.H. Stephenson’s 

England XI for the 1861/62 season. 

A significant development during the year 

was finalisation of an MCC Archives Access 

Policy, which sets out the procedures 

relating to use of the archives by the public 

as a research tool. Access commenced in 

April, 2012. 

Our volunteer personnel continued to 

play a vital role in the ongoing delivery of 

the NSM, MCG Tours, MCC Library and 

MCC Archives. Their generosity of time 

and commitment is sincerely appreciated. 

PARTNERS/SUPPLIERS 

The club is very grateful for the support of 

the ground’s key commercial Icon partners 

Coca-Cola Amatil, Herald & Weekly Times 

and Foster’s Group. We also wish to 

recognise National Australia Bank, whose 

formal Icon partnership ended during 

the year. 

We maintained strong commercial 

relationships with a number of licensees, 

partners, contractors and suppliers. Among 

them are Spotless/Epicure, Ticketek, Stadia 

Media, The Promotions Factory, Patties 

Foods, Cadbury, Tabcorp Holdings, 

Treasury Wine Estates, Nestlé Peters Ice 

Cream, Simplot Australia, Mars Food 

Australia (Masterfoods), The Smith’s 

Snackfood Company, Douwe Egberts 

and Don KRC. 

We also welcomed McDonald’s as 

a new partner during the year. 

TOP: The National Sports Museum at the MCG continues to develop into a top-class tourist attraction for 

visitors of all ages. ABOVE: MCG Trust chairman John Wylie (left) and MCC president Paul Sheahan (centre) 

accept the Tour de France yellow victory bicycle from Cadel Evans in the Long Room on December 13, 2011. 

increase in after-hours functions in the 

museum, and in tours by corporate groups, 

has contributed strongly to the business. 

We were delighted to receive a major 

loan from Australia’s first Tour de France 

champion, Cadel Evans, and his BMC 

Racing team. Evans presented the iconic 

yellow victory bicycle he used on the final 

day of his July 2011 win in Paris. The loan 

was arranged through MCG Trust chairman 

John Wylie to mark the 150th anniversary 

of the formation of the Trust. 

The museum’s program of temporary 

exhibitions and displays continued to 

provide additional attractions for visitors. 

In the ISS Exhibitions Gallery, the program 

featured two major new exhibitions: 

“Yilowa! Tiwi Footy” and “Hidden 

History of the MCG”. 

A range of themes was covered by focus 

case displays. Among them was a tribute 

to the career and life of boxing champion 

Lionel Rose, Australia’s achievements in the 

Tour de France, The Presidents Cup trophy, 

a celebration of the 20 th anniversary of the 

Wallabies’ first World Cup win and a tribute 

to the Sydney to Hobart Yacht Race. 

A new acquisition was also displayed — 

the shoes worn by Craig Alexander during 

his October 2011 World Championship win 

at the Hawaii Ironman. 

Ms Ponch Hawkes, a Melbourne 

photographer, commenced her National 

Sports Museum Basil Sellers Creative Arts 

Fellowship for 2011/12. The commitment 

of Mr Sellers to the fellowship program is 

much appreciated. 

With support from the Australian 

Communication Exchange, the museum 

became the first organisation to introduce 

Smart Auslan, an innovation that provides 

an Auslan translation of the Museum’s 

existing audio tour onto the screen of a 

mobile phone. This is a breakthrough that 

benefits deaf and hearing-impaired patrons. 

MCC Library exhibitions during the year 

featured the third phase of “The Crooked 

Staffe: Four Centuries of Cricket in Print” 

ACKNOWLEDGEMENTS 

I am grateful for the assistance and advice 

provided during the year by MCC president 

Paul Sheahan and members of the MCC 

Committee. I congratulate former treasurer 

Michael Andrew for his contribution to the 

club in his short time on the committee and 

wish him well in his new role as 

international chairman of KPMG. 

I also wish to acknowledge the MCG 

Trustees, led by chairman John Wylie, as 

well as the State Government of Victoria 

and our key sporting partners — AFL, 

Cricket Australia and Cricket Victoria. 

The MCC management team, staff and 

volunteers are to be commended for their 

efforts during the year. It is a pleasure to 

lead such a competent and passionate group 

of people. 

To our members, thank you for your 

ongoing commitment to the club. May 

you continue to enjoy all that our great 

club has to offer. 

Stephen Gough 

Chief Executive Officer 


Melbourne Cricket Club 

& Controlled Entities 

Annual Concise Financial Report 

for the year ended 31 March 2012 

Important Information for Members 

The Committee Report, Concise Financial Report and Auditor’s 

Report contained within this document represent a Concise Report. 

Members wishing to receive the full financial report and Auditor’s 

Report may arrange delivery by calling the Melbourne Cricket Club 

office on (+61 3) 9657 8888. 

The Concise Report contained within this document has been 

derived from the full financial report of the Melbourne Cricket Club 

& Controlled Entities for the financial year ended 31 March 2012 and 

cannot be expected to provide as full an understanding of the financial 

performance, financial position and operating, financing and investing 

cash flows of the consolidated entity as the full financial report. 


9

Melbourne Cricket Club & Controlled Entities 

Concise Report 

Committee Report 

Your Committee submit their report for the year ended 31 March 2012. 

Committee Members 

The names of the Committee Members of the Melbourne Cricket Club 

(“the Club”) in office during the financial year and until the date of this 

report are as follows. Committee members were in office for the entire 

period unless otherwise stated. 

A. Paul Sheahan, David A. Crawford AO, Steven J. Smith, Stephen 

C. Spargo, David S. Crow, Peter A. Dakin, William D. Fowles, Jane 

L. Nathan, Karen J. Wood, Edward R. Yencken, Michael J. Andrew 

(resigned 1 December 2011), Peter A. Mitchell (resigned 6 June 2011), 

Michael J. Happell (appointed 17 May 2011), Charles T. Sitch 

(appointed 13 December 2011) and Mark G. Smith (appointed 

13 December 2011). 

Nature of Operations and Principal Activities 

The principal activities of the Club during the year were the ground 

management of the Melbourne Cricket Ground (“MCG”) and the 

encouragement and promotion of sport. The Club also performs 

the role of the Reserve Manager of Yarra Park. 

There was no significant change in the nature of these activities 

during that period. 

Results and Review of Operations 

The consolidated net profit of the Club and its controlled entities 

amounted to $24.575 million compared with a net profit of the 

previous year of $11.529 million. This result has been enhanced 

by State Government grant income of $14.000 million (2011: 

$8.000 million) for the Great Southern Stand Improvement 

Project and Yarra Park Landscape Upgrade. 

MCG events were again very well patronised in 2011/12. The 

introduction of the Big Bash League and a successfully conducted 

Boxing Day Test against India boosted cricket season attendances. 

Football was also very well supported with over 3.1 million patrons 

attending matches, including seven finals. Consequently, event-related 

income remains strong and members contributions to the gate are 

a significant expense. 

The Club’s management of Yarra Park resulted in a net surplus of 

$1.365 million (2011: $1.047 million). As required under legislation 

the surplus will be spent on the operation, maintenance and 

improvement of Yarra Park. These monies support the approved 

‘Master Plan’ for Yarra Park which includes major improvements 

to irrigation, grasses, soils, and landscaping works. 

A new membership database entitled “Affinity” has been developed 

and implemented to enhance our data collection, management and 

service to members. The Club will continue to develop value added 

enhancements to this system over coming years. 

Much progress was made on the Great Southern Stand Improvement 

Project during the year, and the standard of facilities and amenities has 

increased significantly. This project will be completed during 2012/13 

and the Club’s contribution after receipt and expenditure of 

Government grants is $25.000 million. 

Construction of the Water Recycling Facility in Yarra Park continued 

during the year. Funded from Club operations and costing $18.200 

million, this major project will deliver recycled water to Yarra Park, 

the MCG and Punt Road Oval when completed. 

The Club continued to generate positive cash flows from its activities 

and will continue to monitor the cash flows and the ability to further 

reduce the Club’s debt. 

The net operating result of the parent entity is materially in line 

with the results of the consolidated entity. 




Committee Report (continued) 

Significant Changes in the State of Affairs 

There have been no significant changes in the Club’s state 

of affairs during the financial year. 

Significant Events after the Balance Date 

There have been no significant events occurring after balance 

date, which may affect either the Club’s operations, or results 

of those operations, or the Club’s state of affairs. 

Likely Developments and Expected Results 

The Committee does not expect any significant changes to 

the operations of the Club. 

Environmental Regulation and Performance 

The Club has completed an Environmental Management Plan and 

system for the MCG to ISO 14001 guidelines. The plan establishes 

guidelines for energy, water and waste management and is constantly 

under review to account for legislative requirements and changing 

social expectations. Findings from the Greener Government Buildings 

Program will further inform the Environmental Management Plan. 

Major undertakings during 2011/12 include the creation of a sports 

lighting model for improved lighting assessment, the progression of 

the Water Recycling Facility (90% completed), the progress of the 

Greener Government Building Program to the Detailed Facilities 

Study Stage, the installation of a Class A water distribution system, 

updating the process of waste recycling and management and the 

introduction of annual venue environmental audits as part of 

reporting to the Department of Climate Change through the 

National Greenhouse and Energy Reporting System. 

Security 

Given the MCG’s status as an iconic event venue in Australia, the Club 

has placed high importance upon the management and mitigation of 

security risk issues. Accordingly, several strategic security management 

initiatives are ongoing. These measures have enhanced the safety of 

ground users on event and non-event days. The Committee and Club 

management will continue to develop and implement security risk 

reduction strategies. 

Safety 

The Club provides a strong focus on Occupational Health and Safety 

at the MCG. This is evidenced by the Club maintaining its Advanced 

SafetyMAP accreditation following the annual independent audit. 

SafetyMAP covers Committee, staff, contractors and MCG 

tenants and is always under review. 

The review of policies and procedures occurs regularly through 

reporting to the Committee and its Sub-Committees, management 

and staff and Health and Safety Committee. 

Indemnification and Insurance 

of Committee Members 

The Club provided and paid premiums for Directors and Officers 

Liability and Legal Expenses insurance contracts, covering members 

of the Committee, and the Directors, Executives and Statutory 

Officers of the Club. 

The insurance is in respect of legal liability for damages and legal 

costs arising from claims made by reason of any omission or acts (other 

than dishonesty) by them, whilst acting in their individual or collective 

capacity as members of the Committee or officers of the Club. 

The total amount of insurance contract premiums paid during 

the period was $46,500. 

Rounding 

The financial report is presented in Australian dollars and all values 

are rounded to the nearest thousand dollars ($’000) under the option 

available to the Club under ASIC Class Order 98/0100. The Club is 

an entity to which the Class Order applies. 

Signed in accordance with a resolution of the Committee. 

Paul Sheahan 

President 

Michael J. Happell 

Treasurer 

Melbourne, 6 July 2012 


11



Consolidated Statement of Comprehensive Income 

Year Ended 31 March 2012 notes Consolidated 

2012 2011 

$000 $000 

Revenue 3 123,982 118,295 

Other income 23,985 18,794 

Total Income 3 147,967 137,089 

Arena expenses (5,619) (5,618) 

Facilities expenses (13,932) (12,431) 

Commercial Operations expenses (8,331) (8,551) 

Member contributions to the gate (13,950) (16,470) 

Membership and Customer Services expenses (5,787) (5,976) 

Events Administration expenses (16,088) (15,841) 

Administration expenses (10,241) (9,885) 

Depreciation expenses (25,118) (26,167) 

National Sports Museum Limited (“NSM”) expenses (3,016) (2,750) 

Yarra Park expenses (1,845) (1,806) 

Finance costs expense (19,465) (20,065) 

Total Expenses (123,392) (125,560) 

Net Profit for the period 24,575 11,529 

Other Comprehensive Income 

Changes in fair value of cash flow hedge 684 (499) 

Other comprehensive Income / (loss) for the period 684 (499) 

Total comprehensive income for the period 25,259 11,030 

12 MCC Annual Report 2011/12



Discussion and Analysis 

– Consolidated Statement of Comprehensive Income 

TRENDS IN REVENUES AND EXPENDITURES 

Income 

Total consolidated income increased from $137.089 million in 

2011 to $147.967 million in 2012 (see note 3 for further details). 

The major items contributing to this increase were: 

• Government grant income was received from the State Government 

of Victoria, $12.000 million (2011: $8.000 million) for the Great 

Southern Stand Improvement Project and $2.000 million for the 

Yarra Park Landscape Upgrade (2011: nil). 

• Event related revenue (including catering receipts) increased by 

$3.818 million due to continued strong MCG event attendances. 

Expenses 

Total consolidated expenses decreased by $2.168 million to $123.392 

million. The key movements in expense categories were: 

• Member contributions to the gate decreased by $2.520 million, 

mainly due to the replay of the 2010 AFL Grand Final and the 

well attended 2010 Ashes cricket Test match. 

• Facilities expenses increased as work commenced on the Yarra Park 

Landscape Upgrade. 

• Some plant and equipment assets became fully depreciated in the 

current year, resulting in a reduction to total depreciation expenses 

of $1.049 million. 


13



Consolidated Statement of Financial Position 

At 31 March 2012 

Consolidated 


$000 $000 

Current Assets 

Cash and cash equivalents 50,788 47,488 

Trade and other receivables 15,087 16,351 

Other assets 1,376 1,135 

Total Current Assets 67,251 64,974 

Non-Current Assets 

Property, plant and equipment 

MCG building improvements 463,907 484,811 

Plant and equipment 13,881 13,217 

Software assets 7,026 - 

Work in progress 32,005 6,963 

Yarra Park assets 954 1,079 

NSM Collection assets 457 457 

Other assets - 34 

Derivative financial instruments 782 98 

Total Non-Current Assets 519,012 506,659 

Total Assets 586,263 571,633 

Current Liabilities 

Trade and other payables 48,233 43,121 

Interest bearing loans and borrowings 13,955 12,374 

Provisions 2,875 2,661 

Total Current Liabilities 65,063 58,156 

Non-Current Liabilities 

Trade and other payables 3,163 6,612 

Interest bearing loans and borrowings 266,428 280,641 

Provisions 317 191 

Total Non-Current Liabilities 269,908 287,444 

Total liabilities 334,971 345,600 

Net Assets 251,292 226,033 

Equity 

Accumulated funds 248,495 225,285 

Reserves 2,797 748 

Total Equity 251,292 226,033 


CHANGES IN THE COMPOSITION 

OF ASSETS AND LIABILITIES 

Consolidated Net Assets increased by $25.259 million to $251.292 million. 




– Consolidated Statement of Financial Position 

Changes in Assets 

The major changes were: 

Current Assets 

• An increase in Cash assets of $3.300 million. Refer to Discussion 

and Analysis — Consolidated Statement of Cash Flows. 

Non-Current Assets 

• A decrease in MCG building improvements of $20.904 million 

due to depreciation applied to a stable asset base. 

• An increase in capital work in progress of $25.042 million, due 

to ongoing works on major projects, including the Great Southern 

Stand Improvement Project and the construction of a Water 

Recycling Facility in Yarra Park. 

• The capitalisation of the Affinity Membership System as software assets. 

Changes in Liabilities 

The major changes were: 

Current Liabilities 

• An increase in current payables due to a rise in trade payables 

relating to capital projects and income received in advance. 

Non-Current Liabilities 

• A decrease in interest bearing liabilities due to principal repaid 

on term loans associated with the MCG Redevelopment. 

• A decrease in trade and other payables of $3.449 million, 

representing a reduction in revenue received in advance. 


15



Consolidated Statement of Changes in Equity 

YEAR ENDED 31 MARCH 2012 

CONSOLIDATED 

Accumulated Asset Revaluation Yarra Park Cash Flow Hedge Total 

Funds Reserve Reserve Reserve Equity 

$’000 $’000 $’000 $’000 $’000 

Balance at 1 April 2010 214,803 10 (2) 192 215,003 

Profit for the year 11,529 - - - 11,529 

Transfer to Yarra Park reserve (1,047) - 1,047 - - 

Other Comprehensive Income for the year - - - (499) (499) 

Total Comprehensive Income for the period 10,482 - 1,047 (499) 11,030 

Balance at 31 March 2011 225,285 10 1,045 (307) 226,033 

Profit for the year 24,575 - - - 24,575 

Transfer to Yarra Park reserve (1,365) - 1,365 - - 

Other Comprehensive Income for the year - - - 684 684 

Total Comprehensive Income for the period 23,210 - 1,365 684 25,259 

Balance at 31 March 2012 248,495 10 2,410 377 251,292 





– Consolidated Statement of Changes in Equity 

CHANGES IN THE COMPOSITION 

OF TOTAL EQUITY 

Consolidated total equity in the current year increased 

by $25.259 million to $251.292 million. 

The major equity movements during the year were: 

• The reported net profit of $24.575 million, and movement 

in the cash flow hedge reserve of $0.684 million. 

• Included in the total result is the transfer of the net surplus from 

Yarra Park activities of $1.365 million to the Yarra Park Reserve. 

This amount must be spent on the operation, management, 

maintenance and improvement of Yarra Park. Refer to Note 2(b) 

for the Yarra Park accounting policy. 


17



Consolidated Statement of Cash Flows 

YEAR ENDED 31 MARCH 2012 

CONSOLIDATED 


$000 $000 

Cash Flows from Operating Activities 

Receipts from operating activities (inclusive of GST) 120,036 111,417 

Payments to suppliers and employees (inclusive of GST) (77,967) (79,600) 

Interest received 2,781 2,490 

Interest paid (19,483) (20,585) 

Net Cash Flows from Operating Activities 25,367 13,722 

Cash Flows from Investing Activities 

Purchase of property, plant and equipment (33,421) (9,682) 

Contributions relating to MCG Redevelopment 6,100 5,294 

Contributions relating to Great Southern Stand Improvement Project 12,000 8,000 

Contributions relating to the National Sports Museum - 1,750 

Contributions relating to Yarra Park Landscape Upgrade 2,000 - 

Net Cash Flows (used in) / FROM Investing Activities (13,321) 5,362 

Cash Flows from Financing Activities 

Contributions from related party 3,885 3,750 

Repayments of borrowings (12,631) (14,714) 

Net Cash Flows (used in) Financing Activities (8,746) (10,964) 

Net Increase in Cash and Cash Equivalents 3,300 8,120 

Cash and cash equivalents at beginning of the year 47,488 39,368 

Cash and Cash Equivalents at End of the Year 50,788 47,488 


– Consolidated Statement of Cash Flows 

CHANGES IN CASH FLOWS 

There was a net increase in consolidated cash holdings during 

the year totalling $3.300 million. 

The major changes in cash movements during the year included 

the following: 

• Grant funding received from the State of Victoria for major projects, 

namely $12.000 million for the Great Southern Stand Improvement 

Project and $2.000 million for the Yarra Park Landscape Upgrade. 

• Expenditure on property, plant and equipment increased in 

accordance with project work including the Great Southern 

Stand Improvement Project, the Water Recycling Facility 

in Yarra Park and the Affinity Membership System. 

• Receipts from operating activities increased in consequence of higher 

event and membership related revenues and net of working capital 

movements. Refer to Discussion and Analysis — Consolidated 

Statement of Comprehensive Income. 


Notes to the Concise Financial Statements 

31 MARCH 2012 



1. Basis of Preparation of Accounts of the Concise 

Financial Report 

The consolidated concise financial report has been prepared in 

accordance with the requirements of Accounting Standard AASB 

1039 Concise Financial Reports. The financial report is presented 

in Australian dollars. 

2. Summary of significant accounting policies 

(a) Basis of consolidation 

The consolidated financial statements are those of the consolidated 

entity, comprising the Club, MCC Nominees Pty Ltd (a subsidiary) 

and NSM (a controlled entity). The ultimate parent is the Club. The 

Club recognises the operations of NSM within its financial statements, 

but the Australian Gallery of Sport and Olympic Museum (“AGOS- 

OM”) Sporting Collection is an asset recorded in the financial 

statements of the Melbourne Cricket Ground Trust (“MCG Trust”). 

Amounts relating to the construction and fit out of NSM are 

recorded in the Club’s financial report as they are considered part 

of the MCG. There are no equity investments included in the parent 

entity relating to NSM. 

The financial statements of the subsidiary and the controlled entity 

are prepared for the same reporting period as the parent company, 

using consistent accounting policies. 

In preparing the consolidated financial statements, all intergroup 

balances and transactions, income and expenses and profit and losses 

resulting from intra-group transactions have been eliminated in full. 

The subsidiary and controlled entity are fully consolidated from 

the date on which control is transferred to the Group and cease to 

be consolidated from the date on which control is transferred out 

of the Group. 

The Melbourne Cricket Club Foundation Limited (“Foundation”), 

a company limited by guarantee, is categorised as a director related 

party and is not consolidated into the Club’s accounts. Established as 

a vehicle to encourage and promote the playing of sports and preserve 

and manage the Foundation’s Museum and Library, it has a distinctly 

separate purpose to the Club, which acts as the manager of the MCG 

under a management agreement with the MCG Trust and the State 

Government of Victoria. 

These agreements appoint and allow the Club to fulfil all of 

the responsibilities assigned to the MCG Trust under the Yarra 

Park Amendment Act as the Reserve Manager of Yarra Park. 

The Club has agreed a separate accounting policy with the 

MCG Trust that details those revenue and expense items that are 

received or incurred by the Club in the performance of their role 

as the Reserve Manager of Yarra Park. These amounts are included 

in the totals in the Statement of Comprehensive Income of the Club. 

The net surplus / (deficit) of these identified items is then transferred 

to a separate reserve as a sub-component of equity so that these 

amounts can be identified and spent on the operation, management, 

maintenance and improvement of Yarra Park. 

The Club has also recorded a number of Yarra Park plant and 

equipment assets that have been contributed by the MCG Trust 

for nil consideration. 

(b) Yarra Park 

Effective from 15 March 2010, the Melbourne Cricket Ground 

and Yarra Park Amendment Act 2009 (“Yarra Park Amendment Act”) 

appointed the MCG Trust as the Committee of Management for Yarra 

Park, thereby expanding the functions of the MCG Trust and specifying 

the management arrangements and the implementation of an 

improvements plan for Yarra Park. 

Under the Yarra Park Amendment Act, the MCG Trust also assumes 

responsibility for car parking arrangements, receiving advice from the 

Yarra Park Advisory Committee on the operation and management of 

Yarra Park, and the management of licences and contracts. Further, any 

money received by or on behalf of the MCG Trust in relation to Yarra 

Park may only be spent on the operation, management, maintenance 

and improvement of Yarra Park, and such monies received and spent 

must be separately accounted for in the financial report. 

The Yarra Park Amendment Act also allows the MCG Trust to 

delegate its functions and responsibilities for Yarra Park to the Club 

and it has done so via the execution by the MCG Trust, the Club and 

the relevant Ministers of the State Government of Victoria through 

a formal Instrument of Delegation and Second Deed of Amendment 

to the MCG Management and Indemnity Deed. 


19



Notes to the Concise Financial Statements (continued) 

31 MARCH 2012 CONSOLIDATED 


$000 $000 

3. Income 

a) Revenue 

Revenue from sales 607 568 

Membership and Customer Services related revenue 45,059 43,442 

Event related revenue 33,452 29,634 

Commercial Operations revenue 25,749 26,280 

NSM revenues 3,517 3,348 

Yarra Park revenues 3,210 2,853 

AFL revenues 8,312 8,195 

Interest income 2,781 2,490 

Other revenues 1,295 1,485 

123,982 118,295 

b) Other income 

Distribution from the MCG Trust for repayment of debt 3,885 3,750 

MCG Redevelopment contributions 6,100 5,294 

NSM contributions - 1,750 

State Government of Victoria contribution – Great Southern Stand Improvement Project 12,000 8,000 

State Government of Victoria contribution – Yarra Park Landscape Upgrade 2,000 - 

23,985 18,794 

Total income 147,967 137,089 




Notes to the Concise Financial Statements (continued) 

4. SUBSEQUENT EVENTS 

There have been no significant events occurring after balance date, 

which may affect either the Club’s operations, or results of those 

operations, or the Club’s state of affairs. 

5. Related Party Disclosures 

(a) The Committee Members of the Melbourne Cricket Club 

and Controlled Entities during the financial year were: 

A. Paul Sheahan (President) 

David A. Crawford AO (Vice-President) 

Steven J. Smith (Vice-President) 

Stephen C. Spargo (Vice-President) 

Michael J. Happell (appointed 17 May 2011, 

appointed Treasurer 16 August 2011) 

David S. Crow 

Peter A. Dakin 

William D. Fowles 

Jane L. Nathan 

Karen J. Wood 

Edward R. Yencken 

Michael J. Andrew (resigned 1 December 2011) 

Peter A. Mitchell (resigned 6 June 2011) 

Charles T. Sitch (appointed 13 December 2011) 

Mark G. Smith (appointed 13 December 2011) 

No remuneration was paid to the Committee Members during the year. 

(b) The following related party transactions occurred during 

the financial year: 

(i) Transactions with other related parties 

a) MCG Trust 

The Club is party to a “Deed of Variation of Lease” with the MCG 

Trust pursuant to which, the Club’s existing tenancy of the MCG was 

extended until 31 March 2042 with an option to extend its lease over 

the members’ reserve for a further 25 years. 

Under a separate management agreement with the MCG Trust and 

the State of Victoria, the Club’s role as ground manager of the MCG 

has also been extended until 31 March 2042. 

During the year, the Club paid the MCG Trust $4.036 million 

(2011: $3.899 million) in respect of its lease rental of the MCG. 

The MCG Trust distributed $3.885 million to the Club for the 

repayment of term loans and amortising inflation indexed bonds 

(2011: $3.750 million). 

From time to time, the Club undertakes transactions on behalf 

of the MCG Trust. As at year-end, amounts receivable by the Club 

from the MCG Trust were $0.003 million (2011: $0.012 million). 

Amounts owing to the Club are settled on 30 day terms and are 

non interest bearing. 

The MCG Trust has delegated its functions and responsibilities 

for the management of Yarra Park to the Club. It has done so via 

the execution by the MCG Trust, the Club and the relevant State 

Government of Victoria Ministers through a formal Instrument of 

Delegation and Second Deed of Amendment to the MCG Management 

and Indemnity Deed. These agreements appoint and allow the Club 

to fulfil all of the responsibilities assigned to the MCG Trust under the 

Yarra Park Amendment Act as the Reserve Manager of Yarra Park. 

b) National Sports Museum 

From time to time, the Club undertakes transactions on behalf of 

NSM. As at year-end, amounts receivable by the Club from NSM 

were $0.198 million (2011: amounts payable by the Club $0.487 

million). Amounts owing to the Club and NSM are settled on 

30 day terms and are non interest bearing. These amounts are 

eliminated in the consolidated financial report. 

c) Other 

Key management personnel are determined to be the Chief Executive 

Officer, General Managers and Executive Managers of the Club. 

During the year, a total annual remuneration of $2,364,036 (2011: 

$2,344,622) was paid to these personnel for the services provided 

to the Club. 

(ii) Transactions with director-related entities 

The Foundation is a director related entity of the Club as there 

are common directorships. 

During the year, the Club remitted to the Foundation $4.021 

million (2011: $3.897 million) in line with the provisions of the 

amended Indemnity Deed between the MCG Trust and the Club. 

From time to time, the Club undertakes transactions on behalf of 

the Foundation. As at year-end, amounts receivable by the Club from 

the Foundation were $0.147 million (2011: $0.273 million). Amounts 

payable by the Club to the Foundation were nil (2011: $0.173 million). 

Amounts receivable by NSM from the Foundation at year end were nil 

(2011: $0.013 million). 

A number of the Club’s Committee members held directorships 

with other entities during the current year. Those entities entering 

into business transactions with the Club on normal commercial 

terms and conditions during the year were: 

Mr David A. Crawford AO 

- Chairman of Foster’s Group Limited 

- Director of BHP Billiton Limited 

Mr Michael J. Happell 

- Partner of PricewaterhouseCoopers partnership 

Mr Mark G. Smith 

- Director of Toll Holdings Limited 

These Committee members did not participate in the decisions to enter 

into business transactions with the Club. 


21

In accordance with a resolution of the Committee of the Melbourne 

Cricket Club, we state that: 

In the opinion of the Committee members: 

(a) the concise financial report of the consolidated entity for the year 

ended 31 March 2012 is in accordance with Accounting Standard 

AASB 1039 Concise Financial Reports; and 

(b) the financial statements and specific disclosures included in this 

concise report have been derived from the full financial report 

for the year ended 31 March 2012. 



Statement by the Committee 

On behalf of the Committee 

Paul Sheahan 

President 

Michael J. Happell 

Treasurer 

Melbourne, 6 July 2012 


Independent auditor’s report to the members of the 

Melbourne Cricket Club 

Report on the Concise Financial Report 

We have audited the accompanying concise financial report of 

Melbourne Cricket Club which comprises the consolidated statement 

of financial position as at 31 March 2012, the consolidated statement 

of comprehensive income, consolidated statement of changes in equity 

and consolidated statement of cash flows for the year then ended and 

related notes, derived from the audited financial report of the Melbourne 

Cricket Club for the year ended 31 March 2012. The concise financial 

report also includes discussion and analysis and the statement by the 

Committee. The concise financial report does not contain all the 

disclosures required by the Australian Accounting Standards. 

Committee’s Responsibility for the Concise 

Financial Report 

The Committee are responsible for the preparation of the concise 

financial report in accordance with Accounting Standard AASB 

1039 Concise Financial Reports and for such internal controls as 

the Committee determine are necessary to enable the preparation 

of the concise financial report. 

Auditor’s Responsibility 

Our responsibility is to express an opinion on the concise financial 

report based on our audit procedures which were conducted in 

accordance with ASA 810 Engagements to Report on Summary 

Financial Statements. We have conducted an independent audit, 

in accordance with Australian Auditing Standards, of the financial 

report of the Melbourne Cricket Club for the year ended 31 March 

2012. We expressed an unmodified audit opinion on the financial 

report in our report dated 6 July 2012. The Australian Auditing 

Standards require that we comply with relevant ethical requirements 

relating to audit engagements and plan and perform the audit to 

obtain reasonable assurance whether the financial report for the 

year is free from material misstatement. 

An audit involves performing procedures to obtain audit evidence 

about the amounts and disclosures in the concise financial report. 

The procedures selected depend on the auditor’s judgment, including 

the assessment of the risks of material misstatement of the concise 

financial report, whether due to fraud or error. In making those risk 

assessments, the auditor considers internal controls relevant to the 

entity’s preparation of the concise financial report in order to design 

audit procedures that are appropriate in the circumstances, but not for 

the purpose of expressing an opinion on the effectiveness of the entity’s 

internal controls. Our procedures included testing that the information 

in the concise financial report is derived from, and is consistent with, 

the financial report for the year, and examination on a test basis, of 

audit evidence supporting the amounts, discussion and analysis, and 

other disclosures which were not directly derived from the financial 

report for the year. 

These procedures have been undertaken to form an opinion whether, 

in all material respects, the concise financial report complies with 

AASB 1039 Concise Financial Reports and whether the discussion 

and analysis complies with the requirements laid down in AASB 

1039 Concise Financial Reports. 

We believe that the audit evidence we have obtained is sufficient 

and appropriate to provide a basis for our audit opinion. 

Independence 

In conducting our audit, we have complied with the independence 

requirements of Australian professional accounting bodies. 

Auditor’s Opinion 

In our opinion, the concise financial report, including the discussion 

and analysis and the statement by the Committee of the Melbourne 

Cricket Club for the year ended 31 March 2012 complies with 

Accounting Standard AASB 1039 Concise Financial Reports. 

Ernst & Young 

Tim Wallace 

Partner 

Melbourne 

6 July 2012 


23

Governance statement 

The Melbourne Cricket Club (“the Club”) is a 

body corporate incorporated under the Melbourne 

Cricket Club Act 1974 consisting of persons who 

under, and in accordance with, the provisions of 

the Club’s rules are members of the Club. 

The business and affairs of the Club are overseen 

and controlled by a Committee (“the Committee”). 

The Committee comprises members of the Club 

elected to the following honorary office bearer 

positions, namely, a president, three vice-presidents 

and a treasurer, and up to nine other Club members 

elected to the Committee. 

The Club will be governed with integrity 

and in a responsible and accountable manner. 

The Committee and management are dedicated 

in their approach to work continuously to improve 

strategies and structures in pursuit of excellence. 

This will be achieved by critically assessing 

performances while respecting the boundaries 

between the committee and management. 

The Committee meets at least 10 times a 

year for the purposes of overseeing all aspects 

of the Club’s business plan and objectives. It 

also deliberates on its responsibilities as ground 

manager of the Melbourne Cricket Ground 

(“MCG”) and Yarra Park for the Melbourne 

Cricket Ground Trust (“MCG Trust”), under 

the Melbourne Cricket Ground and Yarra Park 

Amendment Act 2009. 

Additionally, the Committee reviews the 

performance of the Club’s management team 

in consultation with the Club’s chief executive 

officer, measuring results against the business 

plan objectives, ensuring compliance with legal 

requirements and monitoring the strategic risk 

management plan. 

Nine meetings of the committee were held 

during the period April 1, 2011 to March 31, 

2012 and the record of attendance of members 

of the Committee during the period is as follows: 

A.P. Sheahan 8/9 P.A. Dakin 9/9 

D.A. Crawford 7/9 W.D. Fowles 9/9 

S. Smith 8/9 J.L. Nathan 9/9 

S.C. Spargo 8/9 C.T. Sitch 2/2 

M.J. Andrew 2/5 M.G. Smith 2/2 

M.J. Happell 8/8 K.J. Wood 9/9 

D.S. Crow 6/9 E.R. Yencken 7/9 

P.A. Mitchell 2/2* 

* P.A. Mitchell vacated the committee 

in June, 2011 

Because of inevitable Committee absences, the club 

rules have been amended to provide for attendance 

by technology. A brief description of the club’s 

approach to governance is outlined below. 

MEMBERS’ ROLE 

The Club’s rules require that a meeting of Full 

members of the Club be held annually (“the 

Annual General Meeting”). The purpose of 

the Annual General Meeting is to: 

• Receive reports and audited financial 

statements from the Committee in respect 

of the immediately preceding financial year. 

• Elect office bearers and other members 

of the Committee. 

• Consider any other business for which notice 

has been given in accordance with the rules 

set out in the Club’s constitution. 

All Full (voting) members of the Club are 

advised in the notice of the Annual General 

Meeting about Committee retirements and 

nominations for election or re-election. Full 

members are encouraged to attend the 

Annual General Meeting. 

COMMITTEE COMPOSITION 

(as at March 31, 2012) 

The names and details of the members of 

Committee in office at the date of this statement 

are set out elsewhere in this annual report. 

The composition of the Committee reflects the 

broad range of experience, skills and knowledge 

required to oversee the management and control 

of the Club’s business and affairs. 

SUB-COMMITTEES 

To assist in the execution of its responsibilities, 

the Committee has established a number of 

sub-committees to which the president 

appoints committee members. 

Sub-committees operate principally in a review 

or advisory capacity (except where powers are 

expressly conferred on or delegated to a subcommittee 

by the Committee). 

Sub-committees meet as required either 

monthly or, in some cases, bi-monthly. The 

current composition and functions of the 

sub-committees are summarised below: 

Executive 

Deals with specific Committee referrals, succession 

and urgent matters between Committee meetings. 

A.P. Sheahan (Chairman, 8/9 meetings attended), 

D.A. Crawford (9/9), S.C. Spargo (8/9), S. Smith 

(8/9), M.J. Happell (3/4), M.J Andrew (1/5). 

Club 

Monitors the Club’s membership policies and 

arrangements including nomination and admission 

procedures and membership benefits and services. 

It also oversees compliance with the rules set 

out in the Club’s constitution. 

S. Smith (Chairman, 6/6), D.S. Crow (4/6), 

W. D. Fowles (4/6), P.A. Dakin (3/3), S.C. 

Spargo (4/4), K.J. Wood (5/6), P.A. Mitchell 

(1/2), A.P. Sheahan (ex-officio 4/6). 

Cricket 

Oversees all matters in relation to the cricket 

activities of the Club and its relationship 

with cricket authorities. 

D.S. Crow (Chairman, 6/6), P.A. Dakin (6/6), 

A.P. Sheahan (ex-officio 2/6), 

Finance and Audit 

Oversees the Club’s accounting and reporting 

practices including effectiveness of accounting 

and internal control systems, management 

reporting and compliance with policy, 

regulatory and legal requirements. 

Also reviews risk and evaluates procedures, 

the scope and quality of audit practices and 

oversees and monitors IT performance. 

M.J. Happell (Chairman, 6/6), D.A. Crawford 

(5/7), D.S. Crow (6/7), P.A. Dakin (6/7), W.D. 

Fowles (6/7), S.C. Spargo (1/1), M.G. Smith 

(0/1), M.J. Andrew (2/3), A.P. Sheahan 

(ex-officio 2/7). 

Ground 

Reviews and monitors the Club’s ground 

management operations including management 

of the MCG and outside grounds, commercial 

relationships, buildings, facilities, events, 

human resources and occupational health 

and safety matters. 

D.A. Crawford (Chairman, 4/5), P.A. Dakin 

(5/5), J.L. Nathan (5/5), E.R. Yencken (3/5), 

P.A. Mitchell (1/1), A.P. Sheahan (ex-officio 2/5). 

OTHER COMMITTEE RESPONSIBILITIES 

In addition to the formal sub-committees 

established by the Committee, members of 

Committee are involved in the following 

additional sub-committees and related funds or 

corporate bodies which meet on an as needs basis: 

MCC Sporting Sections, Legal, AFL, Melbourne 

Cricket Club Foundation, Melbourne Football 

Club and and National Sports Museum Limited. 

Members of the Committee who are appointed 

to cricket and the Club’s various Sporting Sections 

as Committee representatives are set out below: 

Cricket: 

Baseball: 

Bowls: 

Croquet: 

Football: 

Golf: 

Hockey: 

Lacrosse: 

Real Tennis: 

Target Shooting: 

Squash: 

Tennis: 

D.S. Crow 

K.J. Wood 

D.A. Crawford 

S. Smith 

S.C. Spargo 

P.A. Dakin 

J.L. Nathan 

C.T. Sitch 

M.J. Happell 

W.D. Fowles 

S.C. Spargo 

M.G. Smith 

COMMUNICATION TO MEMBERS 

The Committee aims to ensure that members are 

informed of all major developments affecting the 

Club. Information is communicated as follows: 

• An annual report is made available to all 

members, either via post or electronically. 

It includes relevant information about the 

operations of the Club during the year, changes 

in the state of affairs of the Club and details 

of future developments, in addition to other 

disclosures required by the Club’s rules 

and policies or by law. 

• The MCC News magazine is made available 

to members three times yearly. 

• Regular emails are broadcast to those 

members who have submitted their email 

address to the Club. 

• The MCC, MCG and NSM websites also 

are regularly updated. 

• Club member information is published every 

Thursday in the sporting sections of the Herald 

Sun and The Age newspapers. 

• The club also used social networking sites 

as a forum to engage with members. 


MCC Health and Safety Policy 

OUR COMMITMENT 

To provide a safe environment for employees, contractors, 

promoters, tenants and patrons at all our sites. 

We believe: 

• Safety of everyone who visits or works at an MCC-managed 

site is a priority. 

• Safety is everyone’s responsibility. 

• Working safely is a condition of employment for all staff 

and contractors. 

• Everyone’s involvement in health and safety is essential. 

• Training and leadership are critical in creating a safety culture. 

• Creating a safety conscious workplace is a management priority. 

We will create a safe environment by: 

• Providing safe work conditions and safe systems of work. 

• Providing the necessary training to staff and contractors. 

• Ensuring legislative compliance through implementation 

of a rigorous health and safety system. 

• Monitoring our performance through internal and external 

auditing of our safety systems against SafetyMAP criteria. 

• Having an active and encompassing Health and 

Safety committee. 

• Identifying risks and implementing controls to reduce 

the risk to as low as reasonably practicable.

Melbourne Cricket Ground 

PO Box 175 East Melbourne Victoria 8002 Australia 

T 61 3 9657 8888 F 61 3 9650 5682 www.mcc.org.au ABN 92 871 871 964

Annual Report 2011/12 - Melbourne Cricket Club

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